sebi:EAD-5/MC/VS/2018-19/29
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Facts / Headnote
Penalty of Rs.5,00,000 imposed on the Noticee for violation of Regulations 3(a), 4(1), 4(2)(a) of the PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 3(a)
- Reg. 4(2)(a)
Parties
- Kamaldhan Vyapaar Private Limited
Holding
The Noticee executed 63 non-genuine reversal trades in 20 illiquid stock option contracts in violation of Regulations 3(a), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 and is liable to a monetary penalty of Rs.5,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 12 4(2)(a) SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter, referred to as “PFUTP Regulations, 2003”).
Page 3 of 12 (c) The trades entered by the Noticee were reversed on the same day with same counterparties at a substantial price difference without any basis for significant change in the contract price which indicates that these trades are artificial and are non-genuine in nature. (d) A summary of dealings of Noticee in the 20 Stock Options contracts in which the Noticee allegedly executed non-genuine reversal trades during the Investigation Period, provided in the SCN is reproduced below- S. No. Contract Name Avg. Buy Rate (Rs.) Total Buy Volume (no. of units) Avg. Sell Rate (Rs.) Total Sell Volume (no. of units) % of Artificial Volume generated by Noticee in the contract to Noticee’s Total Volume in the Contract % of Artificial Volume generated by Noticee in the contract to Total Volume in the Contract 1 ALLD15AUG85.00CEW3 14.00 124000 9.60 124000 100% 100% 2 APLT15AUG210.00PEW2 25.00 50000 4.00 50000 100% 100% 3 BPCL15AUG960.00PEW2 87.15 9500 47.15 9500 100% 83% 4 BRIT15AUG3150.00CEW2 176.25 5500 94.45 5500 100% 26% 5 BRIT15AUG3200.00CEW2 126.95 2625 50.75 2625 100% 50% 6 COAL15AUG380.00PEW3 18.00 50000 5.75 50000 100% 60% 7 COAL15AUG400.00PEW2 28.80 13000 9.60 13000 100% 100% 8 DLFL15AUG110.00CEW3 22.90 98000 2.50 98000 100% 37% 9 DLFL15AUG115.00CEW3 18.80 48000 4.00 48000 100% 83% 10 IBHF15AUG800.00PEW2 34.00 8000 9.00 8000 100% 80% 11 ICIC15AUG420.00PEW2 151.00 10000 109.65 10000 100% 100% 12 IDBI15AUG55.00CEW3 21.95 52000 15.75 52000 100% 32% 13 PTCI15AUG75.00PEW2 12.
Page 4 of 12 6. By indulging in execution of aforesaid non-genuine reversal trades, the Noticee was alleged to have violated regulations 3(a),(b),(c),(d), 4(1), 4(2)(a) of the PFUTP Regulations, 2003, text of which has been reproduced below:-
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Source: SecMarx — sebi:EAD-5/MC/VS/2018-19/29. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.